High Street has half-price Super Thursday

SOME of the country's biggest high street names today cut prices by 50 per cent in a desperate attempt to lure shoppers.

Woolworths announced a half-price closing down sale after last-minute attempts to find a buyer failed. House of Fraser also promised cuts of 50 per cent on many prices.

One analyst in the City summed up the wave of panic, saying: "Desperate times call for desperate measures."

Even Britain's biggest retailer Tesco signalled that it was not immune from the downturn with an announcement that it would halve prices on 1,000 products. Christmas food, drink, toys and gifts are all included.

Department store chain House of Fraser said it was offering reductions of up to half across all sections of its business - from clothes to furniture and homeware.

Among its competitors, both Debenhams and Marks & Spencer have already held a series of 20 per cent discount sales.

M&S has promised to continue the reductions on many lines this week and is also offering four-for-three deals on party food.

A battery of other names such as Currys, Argos, Boots, Sainsbury's and even Waitrose are offering large discounts or special offers on many lines this weekend, with cuts of 20per cent or more commonplace.

Retailers are deeply worried that many nervous consumers are holding back on their Christmas spending in the hope of picking up bargains as the festive season gets closer.

But the biggest concern on the high street is that many people will simply not spend much at all. According to the British Retail Consortium, sales fell 2.6 per cent in November, compared with the same period last year.

Manoj Ladwa, an analyst at ETX Capital, said: "Desperate times call for desperate measures.

"While this will do little to boost share prices, retailers realise that more than a cut in VAT is required in order to spur sales during this crucial period."

The increasing alarm from retailers coincides with the Woolworths closing down sale which has been billed as "The Biggest Sale Ever".

Stores across the country slashed prices as administrators, who were called in following the chain's collapse, looked to recoup money. Accountants Deloitte said a rescue deal for the company had not materialised, and they would be selling its 815 stores. About 25,000 staff face redundancy.

The latest move to sell Woolworths to its former chairman, Sir Geoff Mulcahy, failed yesterday.

Most of the valuable high street locations will now be sold to chains such as Iceland, Argos or Wilkinsons. Tesco may also bid for some sites.

The shockwaves from the collapse will spread beyond the stores themselves. Huge discounting in Woolworths shops is likely to have a knock-on effect on other already hard-pressed brands as customers stock up on cheap wrapping paper, toys, children's clothes, CDs and computer games.

Entertainment UK, Woolworths' wholesale arm, also owes millions to companies such as Microsoft, Nintendo and Paramount. The possibility of many thousands of staff from the failed retailer joining the unemployment queue will add to alarm at the state of the county's economy.

Deloitte has already cut 450 administrative jobs at the chain's offices in London and Castleton, near Rochdale, and some stores are expected to close before the end of the month.

Neville Kahn, of Deloitte said: "We continue to make every effort to convert interest in the Woolworths assets into firm offers.

"While we are still seeking bids from interested parties, Christmas is clearly the busiest time of the year for retailers and it is prudent to do all we can to sell existing stock.

"By moving to a store closing sale and further discounting the stock, we are maximising the sales potential that this period offers."